Exploration group Kenmare Resources said yesterday that it expected to begin work on its African titanium mining project "within a matter of weeks", after shareholders subscribed for $18.7 million worth of new stock in an open offer that formed part of its fundraising.

Loan agreements for $269 million with the development banks backing the project require Kenmare to have $79 million in equity, net of expenses and working capital. Between a $55 million placing and the open offer, the company has raised $73.7 million.

In a statement yesterday, chairman Mr Charles Carvill said the open offer raised more than expected. "We are now in a position to complete the final financing step and raise the last remaining equity, which I expect will allow construction within a matter of weeks," he said.

Speaking after an extraordinary general meeting (egm) in Dublin yesterday, chief executive Mr Michael Carvill said that he expected one of the group's banks would swop debt for equity to make up the shortfall between the amount raised and the capital required. "They have become more comfortable with the project's risk profile," he said.